Gain Experience with SAP S/4HANA – Logistics

Unit 2: Sales Rebates Through Settlement

Management
Sales rebates through Settlement Management
Question 1

“What is Settlement
Management and why do
you need to switch from
classic SD rebates?”

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Sales rebates through Settlement Management
New holistic solution for rebate management

SD rebate processing is no longer supported in SAP S/4HANA. The successor to SD rebate processing
is condition contract management in Settlement Management:
CUSTOMIZATION
Split Criteria on Header and Item | Condition and Scale Base
Business Volume Table | Transfer Rules for Document Creation

Detail Statement
Settlement Calendar
Settlement Information

SETTLEMENT PROGRAM
CONDITION SETTLEMENT
CONTRACT Business Volume Determination | Calculation via Pricing DOCUMENTS
Settlement Document Creation

Business Volume Document Collection

Selection Criteria | Output | FI/CO
Condition Records Messaging

DATA SOURCE
Sales Orders | Purchase Orders | Deliveries | Invoices | Goods Movements
Settlement Management Documents | External Systems | POS Data

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Sales rebates through Settlement Management
Why do we need to switch from “classic” SD rebates (1/2)?

With a traditional ERP system: Traditional ERP system

▪ Rebate indexes are very large Billing documents Customer Customizing
▪ Need to rebuild index in case of master
changes
VBRK VBRP VBPA KNVV TVFK TVKO TVTA T683S
▪ Inflexible business volume
determination
▪ Rebate data is locked
Pricing
throughout the organization prepare
when rebuilding
▪ Large data volumes affect Write

system performance
Billing Rebate index
VBOX
(up to 2TB)
Read

Retroactive rebate Determination

Re-pricing
determination of billing
(pricing type “I”)
(SDBONT06) documents

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Sales rebates through Settlement Management
Why do we need to switch from “classic” SD rebates (2/2)?

With SAP S/4HANA: With SAP S/4HANA

▪ Significantly enhanced Reporting
Condition contract on
functionality (Settlement demand Settlement program
Management) Business volume
Business volume Settlement document
base
▪ Common functionality for determination
Conditions (condition/scale basis) Settlement doc,
SAP S/4HANA Sales and detail statement
Procurement Calculation (pricing)
Data sources
▪ More flexibility: no need to rebuild Settlement document
(Customizing)
the rebate index in case of
Business volume
changes or retroactive update database/views**
▪ Significantly reduced data footprint ▪ Sales order Financial accounting/controlling
and memory ▪ Purchase order
Messaging
▪ No performance reduction in sales ▪ Point-of-sale data
▪ Goods movements Others (for example, output)
processes ▪ Deliveries
▪ Traditional VBO1 rebates are no ▪ Invoices (SD and MM)
longer available* in SAP S/4HANA ▪ Agency documents
▪ External systems **Data source – for example, database views
*SAP TPM landscapes are allowed to use (VBRK, VBRP, EKKO, EKPO, or similar) or
classic rebates with some restrictions business warehouse.
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Sales rebates through Settlement Management
Question 2

“How do you create a

condition contract for sales
rebates?”

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Sales rebates through Settlement Management
Question 2 – How do we create a condition contract?

▪ Use the “Monitor Condition Contracts”

SAP Fiori app or transaction WCOCO to
create, change, or display a condition
contract.
▪ Mandatory data for a condition contract:
− Contract type
− Validity period
− Sales area
− Business volume criteria
(e.g. customers, materials etc.)
− Settlement calendar with settlement dates
− Rebate conditions
▪ Release condition contract in the app

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Sales rebates through Settlement Management
Question 3

“Which condition contract types

and settlement date types are
available?”

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Sales rebates through Settlement Management
Question 3 – contract and settlement date types

▪ The condition contract type specifies the rebate scenario of a rebate agreement
− Single customer sales rebate – contract for single customer
− Multiple customer sales rebate – multiple customers in business volume
− Two-step rebates – ability to aggregate figures from several condition contracts
− Goods-related rebates – taxes are calculated based on material items in a
reference document
▪ The settlement date type in the settlement calendar of the condition contract
allows to specify intermediate steps in the settlement process:
− Partial settlement – provisional settlement of a specific time period in the entire
duration of a condition contract (“partial payment”)
− Final settlement – final permanent settlement of a specific time period in the
entire duration of a condition contract. (“to draw the line”)
− Delta settlement – subsequent corrections or late postings to be considered for
referenced final settlement
− Delta accruals settlement – accruals of rebate amounts on special G/L
accounts. AR figures are not affected
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Sales rebates through Settlement Management
Question 4

“How do you run settlement

for condition contracts?”

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Sales rebates through Settlement Management
Question 4 – How do we run condition contract settlement?

▪ Condition contract settlement can be

run manually or scheduled in the
background
▪ Optional: check calculated business
volume of the condition contract(s)
▪ SAP Fiori “Settle Condition Contracts”
tile or GUI transaction WB2R_SC
− Specify document criteria on the
selection screen
− Specify Run control options
(logs, update type)
− Execute settlement program
− Check the logs
▪ Check generated settlement
documents and G/L postings
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Sales rebates through Settlement Management
Question 5

“Which reporting capabilities

are available in the standard
system for condition
contracts?”

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Sales rebates through Settlement Management
Question 5 – basic reporting capabilities for condition contracts

▪ Monitor customer condition contracts

▪ Display business volume
▪ Monitor settlement documents
▪ Flexible reporting on condition contracts

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Sales rebates through Settlement Management
System demo

System demo
Condition contract creation, settlement, and reporting

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Sales rebates through Settlement Management
Key takeaways

▪ “Classic” SD rebate processing is no longer

supported in SAP S/4HANA (exception: scenarios
involving SAP Trade Promotion Management)
▪ The successor to SD rebate processing is condition
contract management in Settlement Management
▪ Condition contract management provides a central
standardized solution for the administration of supplier
and customer rebates
▪ The concept of a condition contract can already be
implemented in ERP by activating the relevant business
functions
▪ The functionality is very flexible and can be used in
innovative ways. However, it requires investing some
time to familiarize yourself with the solution.
▪ Purchasing rebates management is similar to sales
rebates. Only contract types and source documents differ.
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Thank you.
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